UK's Biggest Phone Network Created as Three-Vodafone Merger Gets Conditional Approval

By Evans Momodu
2 minute read


The Competition and Markets Authority (CMA) has approved the merger of Vodafone and Three, paving the way for the creation of the UK’s largest mobile network with 27 million customers.

This decision comes despite earlier concerns that the merger could lead to higher prices for millions of users.

Approval is contingent on the merged entity committing to invest billions in enhancing 5G internet services and adhering to legally binding targets.

These include capping certain mobile tariffs and providing set contractual terms to mobile virtual network operators (MVNOs) for three years.

Progress will be monitored through annual reports submitted to both the CMA and Ofcom, which will enforce these commitments.

The merger, valued at approximately £16.5 billion, reduces the number of major UK mobile networks from four to three.

Proponents argue that increased investment in 5G infrastructure will boost competition in the long term, benefiting consumers with improved services.

Industry analyst Paolo Pescatore views the deal as a transformative move, promising better network investment and improved services, though he notes it may take years for these benefits to materialise.

Critics, including Rocio Concha from consumer advocacy group, warn that the merger could reduce competitive pressure, potentially leading to higher prices and lower service quality in the short term.

Concha emphasized the importance of strict oversight by the CMA and Ofcom to ensure the merged company meets its commitments, urging decisive action if it fails to do so.
Source: Sky news